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Unformatted text preview: Capital investment decisions are that decisions in which we invest our money in big projects like purchasing of machinery and setting up a new plant or show room etc. So, we should know, the types of capital investment decisions. We can divide capital investment decisions on the following basis. A. On the Basis of Firm's Existence 1. Buying New and Replacement of Fixed Asset If company or firm is newly incorporated, it will take which new fixed asset should be purchased but an existing form will take capital investment decisions relating to replacement of any old fixed asset due to modernization. Company will take decision which fixed asset should be replaced and which new fixed asset should be purchased after replacement. 2. Expansion of Fixed Asset In these decision, company may take decision to extend fixed asset for improving efficiency. Suppose, we have one plant but due to increase In these decision, company may take decision to extend fixed asset for improving efficiency....
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This note was uploaded on 10/19/2011 for the course FINANCE 302 taught by Professor Staff during the Fall '10 term at East West University, Chicago.
- Fall '10